000963:SSEHuadong Medicine Co., Ltd Analysis
Data as of 2026-07-20 - not real-time
CN¥31.34
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Huadong Medicine is trading just below a clear resistance level while the 20‑day and 50‑day moving averages sit beneath the 200‑day average, signalling a bearish longer‑term trend. Technical momentum is mixed – the MACD histogram is positive and the RSI hovers in neutral territory, yet price action remains constrained by the nearby resistance. Volatility is elevated and market sentiment is at an extreme greed level, suggesting heightened short‑term speculative pressure.
Fundamentally, the company delivers modest revenue growth, solid gross and operating margins, and a low debt‑to‑equity profile, supporting its ability to sustain a ~3% dividend yield. The PE multiple is well below the industry average, though the DCF‑derived fair value sits under the current market price, while analyst consensus targets remain substantially higher, indicating a potential upside if earnings continue to improve.
Fundamentally, the company delivers modest revenue growth, solid gross and operating margins, and a low debt‑to‑equity profile, supporting its ability to sustain a ~3% dividend yield. The PE multiple is well below the industry average, though the DCF‑derived fair value sits under the current market price, while analyst consensus targets remain substantially higher, indicating a potential upside if earnings continue to improve.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price approaching resistance with limited upside
- Bearish alignment of short‑term moving averages
- Bullish MACD histogram providing a counterbalance
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Attractive dividend yield relative to peers
- PE multiple below industry average
- Analyst price targets indicating upside potential
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- Consistent cash flow generation and low leverage
- Sustainable payout ratio supporting dividend continuity
- Steady earnings growth underpinning long‑term valuation
Key Metrics & Analysis
Financial Health
Revenue Growth4.20%
Profit Margin7.95%
P/E Ratio15.7
ROE13.80%
ROA6.48%
Debt/Equity8.28
P/B Ratio2.1
Op. Cash FlowCN¥4.2B
Free Cash FlowCN¥2.4B
Industry P/E28.7
Technical Analysis
TrendBearish
RSI58.1
SupportCN¥25.63
ResistanceCN¥32.50
MA 20CN¥29.41
MA 50CN¥29.48
MA 200CN¥36.14
MACDBullish
VolumeStable
Fear & Greed Index88.13
Valuation
Fair ValueCN¥22.63
Target PriceCN¥47.12
Upside/Downside50.34%
GradeOvervalued
TypeBlend
Dividend Yield3.09%
Risk Assessment
Beta0.05
Volatility49.53%
Sector RiskMedium
Reg. RiskHigh
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.